Technical analysis

Technical analysis

16 October 2018
  • 17:52

    SP500 Forms a Consolidation Triangle

    SP500 Forms a Consolidation Triangle 16.10.2018


    US stock markets dropped on Monday, but the dip was bought and the SP500 index was 0.50 per cent stronger during the London session on Tuesday, trading near 2,760 USD.

    It seems as if the price is moving in a consolidation triangle pattern, which could be traded on both sides. Should an upside breakout occur, it could mean that the latest sell-off might be over. However, if the price breaks down from this triangle, the decline could resume.

    The upper line of this triangle is currently near 2,770 USD and if the price jumps above, we could see an upward move toward 2,800 USD.

    On the downside, the lower line of the triangle is near 2,750 USD and if this is broken, further decline from last week's lows of 2,710 USD could occur.

    Therefore, the near future of the SP500 index will most likely be decided when this triangle is broken on either side, with volatility expected to rise soon after.

    Disclaimer:

    Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.

  • 17:29

    AUDUSD: Aussie Fails at Resistance, Slides on Tuesday

    AUDUSD: Aussie Fails at Resistance, Slides on Tuesday 16.10.2018



    The Australian Dollar slipped on Tuesday and the AUDUSD pair was 0.20 per cent weaker during the London session. The pair traded at around 0.7110.

    The important resistance was at previous lows at 0.7150 and the pair remained at this level on Monday and then quickly reversed. This zone is still the major resistance and bears should defend it, because if the Aussie jumps beyond this level, we could see a bigger relief rally toward the long-term bearish trend line, which is currently at around 0.7220. From the intraday perspective, another selling zone might be near 0.7130, where previous highs are located.

    A more negative fact for bulls to consider, is that the pair has dropped below the short-term bullish trend line and that similar development has occurred on the RSI indicator too, suggesting further selling pressure may arise over the next few hours.

    The support could be located at the 0.71/0.7090 region and if broken, further deterioration toward the current cycle lows at 0.7050 might occur. As long as the pair trades below 0.7130, the short-term outlook seems bearish.

    Disclaimer:

    Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.

Market focus

  • Earnings Season in U.S.: Major Reports of the Week
  • Swiss Producer and Import Price Index fell in September 2018 by 0.2% compared with the previous month
  • Fed's Quarles Calls for Predictable, Gradual Policy Normalization
  • Trump Says He Doesn't Want to Fire the Fed Chair. It Isn't Clear If He Could
October 2018
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002
Mon
Tue
Wed
Thu
Fri
Sat
Sun
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
REGISTER FOR TRAINING